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This entry was published on 2021-04-09
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SECTION 18-402
Continuity of contract and safe harbor
General Obligations (GOB) CHAPTER 24-A, ARTICLE 18-C
§ 18-402. Continuity of contract and safe harbor. 1. The selection or
use of a recommended benchmark replacement as a benchmark replacement
under or in respect of a contract, security or instrument by operation
of section 18-401 of this article shall constitute:

a. a commercially reasonable replacement for and a commercially
substantial equivalent to LIBOR;

b. a reasonable, comparable or analogous term for LIBOR under or in
respect of such contract, security or instrument;

c. a replacement that is based on a methodology or information that is
similar or comparable to LIBOR; and

d. substantial performance by any person of any right or obligation
relating to or based on LIBOR under or in respect of a contract,
security or instrument.

2. None of: a. a LIBOR discontinuance event or a LIBOR replacement
date, b. the selection or use of a recommended benchmark replacement as
a benchmark replacement; or c. the determination, implementation or
performance of benchmark replacement conforming changes, in each case,
by operation of section 18-401 of this article, shall:

(i) be deemed to impair or affect the right of any person to receive a
payment, or affect the amount or timing of such payment, under any
contract, security, or instrument; or

(ii) have the effect of (A) discharging or excusing performance under
any contract, security or instrument for any reason, claim or defense,
including, but not limited to, any force majeure or other provision in
any contract, security or instrument; (B) giving any person the right to
unilaterally terminate or suspend performance under any contract,
security or instrument; (C) constituting a breach of a contract,
security or instrument; or (D) voiding or nullifying any contract,
security or instrument.

3. No person shall have any liability for damages to any person or be
subject to any claim or request for equitable relief arising out of or
related to the selection or use of a recommended benchmark replacement
or the determination, implementation or performance of benchmark
replacement conforming changes, in each case, by operation of section
18-401 of this article, and such selection or use of the recommended
benchmark replacement or such determination implementation or
performance of benchmark replacement conforming changes shall not give
rise to any claim or cause of action by any person in law or in equity.

4. The selection or use of a recommended benchmark replacement or the
determination, implementation, or performance of benchmark replacement
conforming changes, by operation of section 18-401 of this article,
shall be deemed to:

a. not be an amendment or modification of any contract, security or
instrument; and

b. not prejudice, impair or affect any person's rights, interests or
obligations under or in respect of any contract, security or instrument.

5. Except as provided in either subdivision one or subdivision three
of section 18-401 of this article, the provisions of this article shall
not be interpreted as creating any negative inference or negative
presumption regarding the validity or enforceability of:

a. any benchmark replacement that is not a recommended replacement
benchmark;

b. any spread adjustment, or method for calculating or determining a
spread adjustment, that is not a recommended spread adjustment; or

c. any changes, alterations or modifications to or in respect of a
contract, security or instrument that are not benchmark replacement
conforming changes.